Feds Simplify Performance Reviews for Government Workers
Published Date: 2/24/2026
Proposed Rule
Summary
The Office of Personnel Management is updating how performance reviews work for most federal workers, like General Schedule and prevailing rate employees. They’re simplifying rating levels, requiring agencies to check their appraisal systems every two years, and changing rules about rating disputes and reviews. These changes aim to make performance management smoother and start after public comments close on March 26, 2026.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
Allow Standardized Rating Distributions
OPM proposes to remove the ban on a forced or "standardized" distribution of performance ratings for non‑SES employees and would permit OPM to require a standardized distribution for some or all rating levels. The proposal also states OPM may exclude certain excepted‑service employees appointed under Schedules C or G from such requirements.
Remove Level 2 Rating Options
OPM proposes to remove any approved summary rating patterns that include a "Level 2" and any patterns that have "Level 4" as the highest rating for non‑SES employees (including General Schedule and prevailing rate employees). This change is part of a proposed rulemaking with public comments due March 26, 2026.
Ban Arbitration of Performance Ratings
OPM proposes to prohibit contesting performance ratings through union grievance arbitration for employees covered under 5 CFR part 430, subpart B. Employees would still be able to request informal reconsideration and ratings could be changed following a formal proceeding that results in a final determination or bona fide settlement.
Limit Pass/Fail (Pattern A) Use
OPM proposes to restrict use of Summary Level Pattern A (a 2‑level pass/fail system) to seasonal employees, teachers, General Schedule grades 1–4, and Federal Wage System (wage grade) employees, including equivalent grades in other covered personnel systems. This limits where agencies may apply a simple pass/fail appraisal.
Require Supervisory Critical Element
OPM proposes adding a supervisory critical element requirement so that all supervisors covered under 5 CFR part 430, subpart B must have a supervisory critical element in their performance plans. This applies to supervisors among non‑SES employees, including GS and prevailing rate employees.
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Key Dates
Department and Agencies
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